Factors That Influence How Much You Pay For Car Insurance
Posted on 12. Aug, 2010 by admin in Policy influences
In most cases, if you shop around, you will find the exact same policy at another insurance company for more or less than you are currently playing. What factors influence how much you will pay for your car insurance?
• Driving record
At-fault accidents, not-at-fault accidents, at-fault tickets and not-at-fault tickets all influence the rate you will get on your insurance policy. As unfair at it may seem, regardless of an accident of ticket being your fault your statistics for being involved in an accident will increase and so will your premium.
• Personal Profile
Certain personal factors are going to have an influence on the cost of your policy. A male’s premium will always be higher than a female’s premium. While this may seem sexist and unfair, keep in mind the insurance companies are working off of statistics and statistically speaking, females are involved in less accidents and traffic violations each year than males.
• Continuous Coverage
A person who has had no breaks in their insurance coverage is going to pay considerable less for their policy than a person that has canceled their policy or had their policy canceled on them. Having continuous coverage shows the insurance company two important things; one, you are responsible enough to not drive on the road as an uninsured driver and two, that you had a job or some type of steady income in order to pay for your policy.
• Credit History
First and foremost, your credit history is a reflection of you. Factors that lower your credit score such as defaulting on bills or an eviction from a resident will place you into a high risk pool. Insurance companies view your credit score as a reflection of your level of responsibility, thus those with lower scores are dubbed less responsible. A person’s credit score will also influence the price of their premium because, according to insurance company statistics, individuals with lower credit score file more insurance claims.
Age In More Than Just a Number When it Comes to How Much You Pay For Car Insurance
Posted on 12. Aug, 2010 by admin in Policy influences
Most people fine youth as a blessing, these people are not the car insurance companies. Insurance companies also take into consideration a person’s age when determining how much they will pay out for their car insurance primium. In the world of car insurance, age equals experience and if you are young the insurance companies are going to make you pay.
Teen drivers will pay higher premiums than adults due to lack of driving experience and statistics which show the high likely hood of teenagers being involved in accidents or traffic violations in their first years of driving. At age 25, premiums will decrease for most drivers. However, keep in mind that there are other factors at work in considering the price of your premium besides just your age. If you turn 25 but have several traffic violations or accidents your premium could either not change at all or increase.
How Your Education Influences How Much You Pay For Car Insurance
Posted on 12. Aug, 2010 by admin in Policy influences
Education also plays a role in determining the cost of a person’s premium. Adults without a high school education will pay more and in some states teachers will receive discounts on their car insurance. Education can be a very powerful thing when it comes time for insurance companies to determin how much you’re going to pay, although this factor is a catch twenty-two. Reason being, a student will pay more than a non student. The reason for this is because the insurance company factors in the time spent on the road, distance traveled and the lifestyle of a college student versus that of a non college student and they come up with statistics showing higher rates of accidents and traffic violations by college students and near college campuses. However, four years later when that “high risk driver” gets their bachelors degree their premium will go down and a college graduate will pay less than a non-graduate.
Where You Live And What You Pay
Posted on 12. Aug, 2010 by admin in Policy influences
Personal characteristics such as if a person lives in a rural or urban area will also determine the price of a policy. Those living in urban areas will pay higher premiums because, once again, statistics show that there are more accidents taking place in urban areas as opposed to rural areas. Granted this could be because there are more people per square mile in urban areas than there are in rural areas, but insurance companies base their policies off of statistics and not geographic factors.
Also, if you are living in a “high crime” city you will pay more for your car insurance premium because of the heightened risk of automobile theft. People who live by the ocean will also pay more in car insurance premiums because of the risk of natural disasters. You may also seek a hike in your car insurance if you live in an apartment complex or in a condominium because of the element of communal living. However, if you live in a subdivision which is gated, the cost of your premium will go down.
Where To Look For Car Insurance If You Are A “Bad Driver”
Posted on 12. Aug, 2010 by admin in How To Find Car Insurance If You Are A "Bad Driver"
There are several companies that specialize in creating insurance policies for “high risk” drivers. The best way to research these companies is online. You’ll save time and in most cases will be able to get quotes from several different companies from one application.
Because you are classified as “high risk” you’re premium will be more expensive than it was before you were classified as “high risk”, but keep in mind that the longer you have a company and the longer you go with out traffic violations for accidents, the cheaper your policy will become.
Also, remember that different insurance companies have different rates to ratio calculators, which mean that some your rates will differ from company to company because they award and deduct a different amount of points for certain traffic violations so it’s important to shop around.
Information On “Shared Market” Insurance Policies
Posted on 12. Aug, 2010 by admin in How To Find Car Insurance If You Are A "Bad Driver"
If you have tried to shop around different insurance companies and you are still being turn away because of you “high risk’ status, don’t give up yet there is still hope for you.
Most likely you are being denied because you have too many risks for just one insurance company to insure. If this is the case you may want to take advantage of a “shared market” policy. Every state offers this “shared market” option and the best way to get more in depth information on this type of policy is to call an insurance agent because rates and requirements are case specific.
In this “shared market”, your risks are “shared” among several insurance companies. The cost for a policy such as this tend to the almost triple the average premium and the only policy option through this program is general liability Keep in mind, that while this option may be expensive if this is the only way to get insured it is worth it because having an increased laps in coverage will only make it harder and more expensive to obtain a policy later down the road and if you are to have an accident or traffic violation while uninsured will face heavy fines and possible jail time, depending on the severity of the violation.
Ways To Clean Up Your Driving Record
Posted on 12. Aug, 2010 by admin in Ways To Clean Up Your Driving Record
Keep in mind that even though you are classified as a “bad driver” or have been placed in a “high risk” pool there is still hope. While you may have to jump through some hoops now, there are some things that you can do to improve you driving record and become more attractive to insurance companies.
First things first, change your bad habits.Obey traffic laws, practice cautious driving and pay all past and present infractions.
Second, pay your bills on time. Remember, insurance companies take your credit score into consideration when giving out policies and the higher your credit score is the more options you’ll have regarding policy types and deductibles.
You may also want to consider driving an older car because they cost less to insure and if you are deemed a “bad driver” or “high risk” driver, you are inevitably going to have to pay higher premiums, so you will be more likely to afford full coverage on a late model car. However, if do not want to drive an older car, or you are driving an older car and still cannot afford your premium, you could also consider dropping collision and comprehensive coverage to decrease the price of your premium and policy.
Where Are All The Bad Drivers? Here Are The Top 20 States With The Worst Drivers
Posted on 11. Aug, 2010 by admin in Policy influences
According to a survey out from GMAC the follow states had the lowest average scores on their state’s driving tests. You may be surprised which states made the list.
20) Delaware
19) New Hampshire
18) Ohio
17) Kentucky
16) Pennsylvania
15) Louisiana
14) Tennessee
13) Mississippi
12) South Carolina
11) Maryland
10) Connecticut
9) Florida
Washington D.C
7) Massachusetts
6) Rhode Island
5) Georgia
4) California
3) Hawaii
2) New Jersey
1) New York